Butwal, March 17: The World Bank has approved an $85 million loan, about Rs 12.5 billion, to implement the Greater Lumbini Area Development Project, a long-planned initiative centered on Buddha-related heritage sites.
The decision was made at the Bank’s board meeting on March 13 in Washington, DC. The project will cover Rupandehi, Kapilvastu, and Nawalparasi West, key districts linked to Lumbini, the birthplace of Gautam Buddha.
According to the Lumbini Development Trust, the total project cost is estimated at over Rs 12.35 billion. Senior director Gyanin Rai said Nepal will receive a formal notice soon, and once the Cabinet approves the loan, implementation will begin.
Rai said efforts to secure funding had been ongoing for years and had nearly failed. Progress over the past year, including sustained engagement with the World Bank, helped bring the project back on track.
Led by the Ministry of Urban Development, the project will be implemented with support from the Ministry of Culture, Tourism and Civil Aviation, Lumbini Province, local governments, and the World Bank. It combines tourism infrastructure development with heritage conservation.
The plan aims to develop a wider Lumbini corridor stretching from Bardaghat in the east to Chandrauta in the west. Originally proposed by former finance minister Bishnu Prasad Paudel, it is seen as a major national project.
Vice-chair Lharkyal Lama said strong coordination among local governments and positive feedback from international partners helped secure the loan. He added that the project could turn the region into a major destination not only for Buddhist pilgrims but also for global tourists.
Key sites include Lumbini, Tilaurakot, and Ramgram. Tilaurakot is believed to be the ancient capital of the Shakya kingdom, while Ramgram hosts what is considered the only intact stupa containing Buddha’s relics.
The project aims to position Lumbini as a global spiritual and tourism hub while improving infrastructure, creating jobs, and supporting local economies. The first phase will focus on major heritage sites, with plans to expand later.
Local governments have also pushed for investment of over Rs 1 billion per municipality to meet infrastructure needs such as roads, drainage, and public facilities.
The Ministry of Urban Development says the project will improve tourism services, increase visitor numbers, and support local businesses. It also includes training for women and youth, upgrades to visitor facilities, and measures focused on climate resilience and social inclusion.
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